Will automation shake up food and beverage industry?

When you think of automation, your mind’s eye might first envision manufacturing plants with robots whirling about, assembling the many gizmos that make up the modern world. Robots have increased productivity and helped lower the relative costs of various goods. And now, automation could shake up the food and beverage industry.

Back in 2015, McDonald’s installed its first self-serve kiosks. These days, amid a tight labor market, many companies are turning to automation to make up for hard-to-find workers. Still, when McDonald’s announced a rapid expansion of these kiosks in 2018, it was largely because they found that kiosks increased ticket size by an average of 30 percent.

Companies like GRUBBRR, meanwhile, offer self-service kiosks to small businesses and report that their customers have seen ticket size increase by as much as 50 percent. With kiosks, consumers are more likely to customize their orders, making upselling easier.

Automation can also improve efficiency and cut costs. As reported by CNBC, THAT Burger Spot!, a small burger chain in Georgia, saw average sales per labor hour reach $85, up from the high $50 range after installing kiosks and online ordering. Robots are also increasingly found in kitchens, flipping burgers and frying wings.

CIO Dive reports that half of the American restaurant operators plan to deploy automation within the next two to three years. Adoption challenges remain difficult as setting up systems requires calibration, but experts say AI may be able to help. While big chains led the charge, more automation providers are targeting and designing solutions for small businesses.